Web Deploy v2 and Web Application Packages

WebApplication.deploy.cmd -- when I run this command on my local machine I was getting this message:

To deploy this Web package, Web Deploy (msdeploy.exe) must be installed on the computer that runs the .cmd file. For information about how to install Web Deploy, see the following URL:
http://go.microsoft.com/?linkid=9278654

To install V2 of the MSDEPLOY.exe you MUST FIRST UNINSTALL V1! There is no failure message if you install V2 after V1, it just simply doesnt write the V2 files to the V2 directory if V1 is installed. Odd behaviour, but is what it is.

If this is not your issue, check out VS2010's SP1 fix to the WebApplication.deploy.cmd:
http://stackoverflow.com/questions/6595086/msdeploy-v2-doesnt-work-with-vs2010s-packages